Appendix 9
JONES BROWN inc.
Insurance Brokers & Consultants
June 9, 2001
Judy Walker
Ultimate Property Management
T2H 2Y5
Dear Judy:
Re: Employee Dishonesty Insurance
Further to our conversation yesterday, I am enclosing a copy of the policy language used in our condominium insurance policies. As you will see, it is the industry boiler plate wording with one small but critical amendment. The definition of ”employee" is amended to include all Employees or Volunteers under the Board's direction. This causes property managers (both the owners of the property management company and his/her employees) to fall within the definition.
Judy, for ACMA'S purposes, this should be the comfort that is needed. As we discussed, not all insurers presently issue appropriate employee dishonesty policies for their condominiums; however, I believe that is more from a lack of awareness than a refusal to do the right thing.
Lastly, while I personally believe that each condominium should make its own arrangements regarding employee dishonesty insurance, you did ask whether we would be prepared to work with ACMA to develop a master policy for all its member companies. In short, the answer is yes. ! do, however, hope that that you carefully examine this before deciding to proceed as the pitfalls may outweigh the advantages of such a program
Yours very truly
Mark Terrill
Managing Partner
COMPREHENSIVE DISHONESTY DISAPPEARANCE AND DESTRUCTION
In consideration, of the premium charged, it is agreed that that the Comprehensive Dishonesty, Disappearance and Destruction Rider, Form C002 (I 1/96) is amended as follows:
Clause B, "Joint Insured" of the General Agreements section is deleted and replaced with the following:
If more than one insured is covered under any certificate attached to this form, the insured first named in the certificate shall act for itself mad for every other insured for all purposes of this form. Knowledge possessed or discovery made by may Insured or by any partner or officer there of shall, for the purposes of Items G, H, and O of Clause 3, constitute knowledge possessed or discovery made by every Insured. Cancellation of the insurance hereunder as respects any employee as provided in Item O of Clause 3 shall apply to every Insured. If, prior to the cancellation or termination of this Form, this Form or may Insuring Agreement hereof is cancelled or terminated as to any Insured, there shall be no liability for any loss sustained by such Insured unless discovered within one year from the date of such cancellation or termination or, as respects Insuring Agreement 1B, with two years there for Payment by the Insurer to the Insured first named on each certificate of any loss under this form, shall fully release the Insurer on account of such loss. If the Insured first named on any certificate ceases for any reason to be covered under this Form then the Insured next named shall there after be considered as the Insured first named for all purposes of this Form.
The definition of "Employee" under Section 3 is amended to include all Employees or Volunteers under the Board's direction.
Comprehensive Dishonesty, Disappearance,
Destruction and Forgery